Question

Bridgeport Corp. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Bridgeport Corp.’s purchases of EZslide snowboards during September. During the same month, 102 EZslide snowboards were sold. Bridgeport Corp. uses a periodic inventory system.

Exercise 6-04 * Your answer is incorrect. Try again. Bridgeport Corp. sells a snowboard, EZ slide, that is popular with snowboard enthusiasts. Below is information relating to Bridgeport Corp.'s purchases of EZslide snowboards during September. During the same month, 102 EZslide snowboards were sold. Bridgeport Corp. uses a periodic inventory system. Units Date Sept. 1 Sept. 12 Sept. 19 Sept. 26 Explanation Inventory Purchases Purchases Purchases Unit Cost $102 105 106 107 Total Cost $ 1,224 4,725 6,042 2,568 $14,559 Totals 138 (a) Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST x IX .. .... ... .... X ERR The ending inventory at September 30 (b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST Cost of goods sold Cost of goods sold O O Click if you would like to Show Work for this question: Open Show Work

Answer 1

FIFO method states that inventorry purchased first is sold first
LIFO method states that inventory purchased later is sold first
Average cost method takes into account average cost for the purpose of calculation
Average cost per unit = Total cost of good available/Total units available
=14559/138
105.5	per unit
Units in Ending Inventory = 138-102	36	units
	FIFO	LIFO	Average Cost
Ending Inventory	3,840	3,744	3,798
Cost of Goods sold = Total cost of goods available - Ending Inventory	10,719	10,815	10,761